WorksheetsValue of Taxable Supply Quiz
Total questions: 10
Worksheet time: 5mins
Transaction Value (Sec. 15(1) Conditions) Which of the following conditions must both be satisfied for the "Transaction Value" to be accepted as the Value of Supply under Section 15(1)?
The price must be paid electronically, and the parties must be located in the same State.
The supplier and the recipient must not be related, and the price must be the sole consideration.
The supply must be of goods only, and the value must not exceed ₹10,00,000.
The price must be paid within 30 days, and the recipient must be a registered person.
Third-Party Payment (Sec. 15(2)(b)) M/s. PharmaCo supplies medicines to a distributor for ₹5,00,000. PharmaCo is liable to pay a regulatory certification fee of ₹5,000, but the distributor (recipient) pays it directly and adjusts the amount. What is the value of the taxable supply?
₹5,00,000 (The amount actually paid by the recipient to the supplier).
₹4,95,000 (₹5,00,000 minus ₹5,000).
₹5,05,000 (₹5,00,000 plus ₹5,000).
The value cannot be determined under Section 15(1).
Non-GST Taxes/Duties (Sec. 15(2)(a)) A municipality levies an Octroi duty of ₹1,000 on goods sold. The supplier charges this duty separately on the invoice. If the price of goods is ₹10,000, what is the base value on which GST must be calculated?
₹10,000, as all other taxes are excluded from the value.
₹11,000, as all taxes other than CGST, SGST, IGST, and UTGST must be included.
₹9,000, as Octroi is an old tax and must be deducted.
₹11,800, as GST must be included in the base value.
Incidental Expenses (Sec. 15(2)(c)) A furniture manufacturer sells a table for ₹25,000. The invoice separately shows Packing Charges of ₹500 and Commission to Agent (paid by supplier) of ₹1,000. Which amount should be the base value for GST?
Only ₹25,000.
₹25,000 + ₹500 (Packing only).
₹25,000 + ₹1,000 (Commission only).
₹25,000 + ₹500 + ₹1,000 (All incidental expenses).
Subsidies (Sec. 15(2)(e)) An educational institute provides coaching services for ₹1,00,000, which is subsidized by ₹20,000 from the State Government and ₹10,000 from a Private Corporate Foundation. Both subsidies are linked to the price. What is the taxable value of the service?
₹1,00,000
₹90,000
₹80,000
₹70,000
Delayed Payment (Sec. 15(2)(d)) A recipient delays payment for a ₹5,00,000 service and pays a late fee of ₹15,000. What is the GST treatment of the ₹15,000 late fee?
It is treated as a separate supply of service and is exempt from GST.
It is treated as a separate supply of service and is taxable at 18% (Residual rate).
It is included in the value of the original service supply and is taxable at the original rate.
It is not taxable, as it is a mere compensation for financial loss.
Pre-Supply Discount (Sec. 15(3)(a)) A supplier offers a 5% trade discount on a product listed at ₹2,00,000. The discount of ₹10,000 is recorded in the invoice. What is the value of the taxable supply?
₹2,00,000 (Discount is not allowed as a deduction).
₹1,90,000 (Discount is allowed as it is recorded in the invoice).
₹1,90,000 only if the discount was agreed upon before the sale.
Depends on whether the recipient reverses ITC.
Post-Supply Discount Conditions (Sec. 15(3)(b)) Which condition, if NOT met, will result in a post-supply discount being INCLUDED in the value of supply (i.e., tax liability cannot be reduced)?
The discount must be in the form of a Credit Note.
The discount must be for a cash payment within 7 days.
The discount must be established under an agreement at or before the supply, and the recipient must reverse the attributable ITC.
The discount must be approved by the GST Council.
Related Parties & Full ITC (Rule 28 Proviso) A supplier (A Ltd.) sells machinery to its 100% subsidiary (B Ltd.), a related party, for ₹5,00,000. The Open Market Value (OMV) is ₹7,00,000. B Ltd. is eligible for full Input Tax Credit (ITC). What is the correct value of the taxable supply?
₹7,00,000 (The Open Market Value).
₹5,00,000 (The invoice value).
110% of the cost of the machine.
90% of the price charged by B Ltd. to its customer.
Valuation When OMV is Unknown (Rule 30) If the value of supply cannot be determined under Section 15(1) or the preceding Valuation Rules (Rule 27/29), what percentage of the cost of production/acquisition is used to determine the value under Rule 30 (Cost Method)?
150% of the cost of production.
90% of the cost of production.
110% of the cost of production or acquisition of goods/services.
The residual method (Rule 31).
